The owner of Comet is considering selling the firm or spinning it out into a joint venture after the UK electrical giant posted "unsatisfactory and unacceptable" results.
Comet's sales for the 12 months to 30 April slumped almost seven per cent to £1.54bn. The high street titan posted a retail loss of £8.9m, compared with an £11.5m profit last year. Seventeen of the retailer's UK stores now face closure in the coming months.
Members of senior management at parent company Kesa have expressed their displeasure with the results and revealed that all options to reverse Comet's fortunes remain on the table.
Kesa chairman David Newlands said: "We have a strong turnaround plan for Comet to restore its profitability in the medium term and, in parallel, we are examining strategic alternatives to ensure the best overall value for shareholders."
Kesa's group revenue for FY11 rose 0.7 per cent on a constant currency basis to €5.9bn (£5.3bn). Retail profit fell 2.9 per cent in constant currencies to €107m.
The firm's underwhelming performance comes just days after reports emerged that Best Buy might be forced to shelve its ambitious European expansion plans. However, market speculation continues that the US giant may look to build scale by acquiring UK mainstay Dixons. Rumours of a sale first emerged around the time of Best Buy's entry into the UK last year.
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